On Our Radar

On Our Radar

Draghi: ECB Rate Decision Was Unanimous

All members of the European Central Bank's Governing Council were in favour of keeping interest rates unchanged when they met on Thursday, ECB President Mario Draghi said.

Continue Reading Below

"The ... decision was unanimous," Draghi told a news conference after the ECB left its main refinancing rate at a record low of 0.75 percent.

"If the decision was unanimous it implies there was no request to have a rate cut."

He said bond yields and the cost of insuring against sovereign defaults were "significantly lower", while stock markets were stronger and less volatile.

Draghi also cited factors including strong capital inflows into the euro area and a rise in deposits at banks in periphery countries.

"But all this has not found its way through to the real economy yet," Draghi said, noting that the euro zone economy continues to be weak. "So there was no reason to change the medium-term outlook for price stability."

Continue Reading Below

ADVERTISEMENT

After last month's policy meeting, Draghi said there had been a wide discussion about lowering rates - remarks that fuelled expectations a rate cut was on the cards, until hawkish comments by other key policymakers dispelled such hopes.